The Employee Retention Tax Credit for Employers

Posted by & filed under Accounting Information Systems, Accounting Principles, Advanced Accounting, All Articles, Auditing, Behavioral and Social Issues Related to Accounting, Cost Accounting, Financial Accounting, Income Taxes, Intermediate Accounting, Managerial Accounting, Uncategorized.

According to Accounting Today, IRS and Treasury Department guidance was released for employers who paid qualified wages after June 30, 2021, and before Jan. 1, 2022, as part of the CARES Act.

Questions:

  1. What was the objective of including employee retention credits (ERCs) as part of the CARES Act?
  2. During the COVID pandemic, what program proved to be more popular than the ERCs?
  3. Can a business take advantage of both the ERCs and the more popular program?
  4. How can an employer claim the ERC?  
  5. What questions are addressed by the new guidance?

Source:

Cohn, M. (2021) IRS offers further guidance on ERC, even as Congress may end it soon, Accounting Today, August 4 (Retrievable online at https://www.accountingtoday.com/news/irs-offers-further-guidance-on-employee-retention-credit-even-as-congress-may-end-it-soon?)